CSEC Principles of Accounts - Introduction to Accounts

Accounting involves recording, classifying, summarising and interpreting of financial data.

• True

• False

Which of the following is not an internal user of accounts?

• Managers

• Employees

• Government

• Owners

The following are careers in accounting except

• Auditor

• Financial Manager

• Accounting Software Developer

• Chef

What is the primary purpose of financial statements?

• To provide information for decision making

• To calculate taxes

• To manage employee payroll

• To track inventory

Which of the following is considered a liability?

• Accounts Receivable

• Cash

• Accounts Payable

• Inventory

Which of the following is an asset?

• Creditors

• Land & Building

• Bank Overdraft

• Loan

Bank Overdraft is a current asset.

• True

• False

Which of the following best describes the Accounting Equation?

• A=C-L

• C=A+L

• A=C+L

• L=C+A

A business assets are $78000 and liabilities $40000. What would be it's capital?

• $118000

• $38000

• $78000

• $40000

An alternative name for a debtor is